Servet Yanatma
Euronews
2025
🏙️ Context and Overview This article, published by Euronews and authored by Servet Yanatma, was created on July 22, 2025, to address the pressing issue of housing affordability in Europe. It highlights the growing share of household budgets allocated to housing, fueled by high rent prices in city centers, which disproportionately affects low-income earners and those on minimum wage. 📊 Rent-to-Salary Ratios Across Europe According to Eurostat data, the rent-to-salary ratio varies significantly among European cities. In 2025, it was reported that rents for one-bedroom apartments in city centers can consume nearly an entire salary, with some cities seeing ratios above 100%. For instance, Lisbon and Istanbul reflect ratios of 116% and 101%, respectively, indicating that average net salaries are insufficient to cover rent. Conversely, Geneva has the lowest rent-to-salary ratio in Europe at 29%, showcasing a more favorable housing situation. 💰 Salary Disparities Salary levels across Europe also exhibit significant disparities. In 2025, average monthly net salaries range from €151 in Cairo to €7,307 in Geneva. Major cities in Northern and Western Europe, such as Luxembourg, Amsterdam, and Frankfurt, report net salaries exceeding €4,000. However, cities like Athens and Istanbul struggle with lower salaries of €1,044 and €855, respectively. Notably, Rome has the lowest average salary among the five largest European economies at €2,046. 🏠 Rental Prices in Major Cities Rental prices vary widely, with the highest rent for one-bedroom apartments in London at €2,732, while Athens offers the lowest at €595. Other cities like Zurich, Dublin, Amsterdam, and Geneva see rents exceeding €2,000, highlighting the pressure on housing costs. This further complicates the affordability issue, particularly in major urban centers. 📉 Disposable Income After Rent The analysis indicates that disposable income after paying rent is extremely low in cities like Lisbon, where residents face a negative balance of –€202. In contrast, Swiss cities, such as Geneva and Zurich, provide the highest disposable incomes after rent, at €5,174 and €4,638, respectively. This stark contrast emphasizes the need for improved housing policies to ensure sustainable living conditions across Europe. 🌍 Global Comparisons The report compares European cities to global counterparts, revealing that cities like New York have a rent-to-salary ratio of 81%, indicating similar challenges in housing affordability. The findings illustrate the urgent need for sustainable housing solutions that address the growing disparity in rent-to-salary ratios and the overall cost of living across Europe.
Housing takes up a large part of household budgets, and this share is growing across Europe, according to Eurostat. High rent prices in city centres add extra pressure, especially for low-income earners and those on minimum wage. In some European countries and cities, rent can consume nearly an entire salary. In fact, in certain places, average net salaries are not enough to cover the rent for a one-bedroom apartment in the city centre, according to Deutsche Bank Research Institute. So, which countries and cities in Europe have the best rent-to-salary ratio? Where is rent simply unaffordable? And how do European cities compare to global ones in terms of housing costs and salaries? The Mapping the World’s Prices report compares net monthly salaries and rents for one-bedroom apartments in city centres across 69 cities worldwide. Euronews Business takes a closer look at the 28 European cities included in the report along with a few others for broader comparison. Where are the highest salaries in Europe? In 2025, average monthly net salaries range from just €151 in Cairo to €7,307 in Geneva, with Zurich close behind at €7,127. This makes Switzerland the highest-paying country overall. In Europe, Istanbul has the lowest salary at €855, followed by €1,044 in Athens. People in the Northern and Western European cities are well-paid. The net salaries are above €4,000 in Luxembourg, Amsterdam, Copenhagen and Frankfurt. Rome has the lowest average salary among the capital cities of Europe’s five largest economies, at €2,046. Madrid follows slightly higher at €2,193. Salaries are significantly higher in Berlin (€3,565), Paris (€3,630), and London (€3,637), with only minimal differences among the UK, France, and Germany. Salaries are also high in US cities, which make up five of the top 11 globally. Which European cities have the highest rents?
Rents for one-bedroom apartments in city centres vary widely, ranging from as low as €189 in Cairo to €3,792 ($4,143) in New York. US cities dominate the top end of the scale. In Europe, the highest rent is in London at €2,732 (£2,365), while the lowest is in Athens at just €595. In Zurich, Dublin, Amsterdam, and Geneva, rents also exceed €2,000, while in Istanbul and Budapest, they remain below €900. Lisbon and Istanbul: Salary doesn’t cover the rent The percentage of salary spent on rent is a more useful measure. It shows how much disposable income is left after paying for accommodation. The rent-to-salary ratio ranges from 24% in Bangalore to 125% in Cairo. A ratio of 100% means the entire salary goes to rent. Anything above that means nothing is left in the pocket or extra income is needed to cover rent. In Europe, rent-to-salary ratio differs from 29% in Geneva to 116% in Lisbon. Besides the Portuguese capital, the ratio is also slightly above 100% in Istanbul (101%). This means the average net salary is not enough to pay the rent for a one-bedroom apartment in either Lisbon or Istanbul. Single earners need to spend three-quarters of their salary on rent in London (75%), as well as in Barcelona and Madrid (both at 74%). In Milan, the ratio is also high at 71%. More than half of the average salary is also spent on rent in several other cities: Rome (65%), Dublin (62%), Athens (57%), Warsaw (56%), Prague (54%), and Budapest (52%). Where is the lowest rent-to-salary ratios? Geneva (29%) is the only European city where the rent-to-salary ratio is below 30%. Following that, there are five more European cities where single earners spend less than two-fifths, or 40%, of their salary on rent. They include Luxembourg and Frankfurt (both at 34%), Zurich and Helsinki (both at 35%), and Vienna (38%).
Except for Helsinki, these examples do not mean that rent is cheap in these cities. Instead, they reflect higher salaries, which reduce the percentage of income spent on rent. Among the capital cities of the top five European economies, Berlin has the lowest rent-to-salary ratio, with residents spending 40% of their average income on rent. Paris follows the German capital at 45%. London has the highest ratio at 75%, followed by Madrid at 74% and Rome at 65%. This ratio in other major cities is as follows: Dublin (62%), Athens (57%), Amsterdam (49%), Stockholm (46%), Edinburgh (44%), Copenhagen (43%), and Oslo (42%). In the global list, other cities where the salary does not cover the rent include Bogota (120%), Mexico City (118%), and São Paulo (102%). In some cities, while the rent can just be paid, there is almost nothing left from the salary—this includes Rio de Janeiro (100%), Manila (94%), Buenos Aires (88%), and Mumbai (84%). The rent-to-salary ratio in New York is 81%, making it the highest among US cities. How much is left after paying the rent? Globally, the highest disposable incomes after paying rent are found in two Swiss cities: Geneva (€5,174) and Zurich (€4,638). The lowest is also in Europe, with Lisbon at –€202, meaning the average salary is not enough to cover the rent. In Istanbul, a single earner needs to find an extra €13 to pay the rent. Besides the two Swiss cities, disposable income after rent is also above €2,000 in six more European cities: Luxembourg (€3,725), Frankfurt (€2,726), Copenhagen (€2,421), Amsterdam (€2,194), Oslo (€2,140) and Helsinki (€2,021). An OECD report shows that bigger cities come with higher housing costs. Spending on housing and utilities has risen over the past 20 years in the EU.